News: S32 UPDATE 1-South32 CEO Kerr says open to buying joint Anglo American manganese assets, page-25

https://www.south32.net/docs/default-source/media-releases/metalloys-divestment.pdf?sfvrsn=134d883d_5

S32's Media Release on the Metalloys sale.

Returns would be modest. Reduces exposure to low margin downstream processing that can be competed away. S32 would definitely be open to further first quartile Manganese mine assets.

On the Q of the cash pile - IMC, FCF, etc - GK & team want more metal mine assets. They will grit their teeth and buyback if opportunity is lacking.

GK has said he has a $5b war chest, ready money with a focus on Cu and Ni. AAL's Manganese and Nickel businesses are on the market, though GK will have to play hard ball on price Vs the miserable Poms as another element of their Empire folds.

SFR has to also be in their sights. GK can buy it all.

I foresee S32 action earlier in the current commodity cycle rather than later.

Ash